(Bloomberg) -- Actively managed ETFS are surging in Canada, expanding an ETF market already dominated by BlackRock's iShares and posing a challenge to the mutual-fund industry that Morningstar says has among the highest management fees in the world.

Assets in actively traded ETFs jumped to about $7.33 billion as of May 31, up almost 50% from a year ago, according to data compiled by Bloomberg. The funds have also outperformed their index-tracking ETF peers this year and now make up about 11% of Canada's $69-billion ETF industry, the most among developed markets, the data show.

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